I need a bit of help on BOTH of these. Anyone?
1 answer:
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Remember that the formula for simple interest is:
is the interest earned
is the principal amount invested
is the interest rate, represented as a decimal
is the amount of time in years
Using information the problem gave us, we can say that the amount of interest earned after one year is:
After 1 year, we will have earned $21. Remember though that we also need to find the amount we will earn after 4 months. Since there are 12 months in a full year, we can say that 4 mohts represents a third of a year. Thus, let's multiply our interest by one-third.
After 4 months, we will have generated $7 and after one year we will have generated $21.